9 Online Retail Scams and How to Avoid Them

These are the top ploys online retailers use to trick you out of your money.

My grandma warned me about the bait-and-switch scam (when a store lures you in with an amazing deal, and then tries to sell you something else) but I never would have fallen for it anyway. Online shoppers like me are a little savvier than past-generations. That’s why retailers have had to evolve and create new scams that grandma’s never heard of. Don’t be fooled. An e-scam is still a scam.

1. “Original” Price

Never put too much stock in the original, retail or list price. These can fluctuate along with the sale price, making it appear that you’re getting a better deal than you actually are. According to Mark Elwood, author of Bargain Fever: How To Shop In A Discounted World, retailers use this pricing strategy to manipulate customers and get them to crave discounts, so they’re more likely to return to the store.

Pro Tip: It’s always a good idea to do a little research and find out what prices other sites charge for the same product.

3. Unnecessary Add-ons

Many Internet security companies automatically include a backup disc with their downloadable software, which you have to manually remove from your shopping cart if you don’t want to pay an extra fee. Most of the time, the backup disc is completely useless. That’s why you should always double check your cart at checkout and make sure nothing accidentally slipped in.

Pro Tip: If you can ever choose between downloadable software and the disc version, always go with the cheaper option and never combine the two if it costs more. You get the same program either way, and if the disc is tied to a key code so you won’t be able to sell it after you use it, anyway.

4. Recurring Payments

Remember, the promotional rate always expires, and then you’re stuck with a monthly fee that’s the regular price. And there’s no escape it if you’ve signed a contract.

Pro Tip: Never sign up for a credit card that charges a monthly fee. Even if you have terrible credit, chances are you can be approved for a card with no annual fee, let alone a monthly one.

5. Shipping Fees

Don’t fall for free shipping deals on products that always come with free shipping – like electronics or other items costing more than $25. Most of the time large exercise equipment will include free shipping as well as one other major discount. If you only find one or the other, it’s time to move on and shop somewhere else.

6. Counterfeit Goods

The only way you’ll ever know an autographed football was actually signed by your sports hero is if you were there while he was signing it. The internet is filled with fake versions of your favorite stuff, and that’s why it’s important to stick with reputable sellers and never stray too far from the retail price. Remember, if it’s too good to be true, then you’re probably getting bamboozled.

7. Premium Products

Guaranteed to cost more.

Unless you’re buying gold bars, what you get is immediately worth less than what you paid for it. Make sure that premium is justified. Some skincare products don’t include the active ingredients to warrant their high prices. Some specialty foods really aren’t that special. Some designer clothing is just regular clothing. To sum it up: the “premium,” “gourmet” and “designer” labels are often unjustified.

8. Online Auction Sites

If a seller contacts you after a sale and asks you to send the money through a channel not approved by the auction site – don’t do it. Auction sites, like eBay, will usually refund your money if you don’t get a product you paid for, but that’s only if you paid through the site, or with one of the site’s approved third party payment options.

9. Email Lists

Ever wonder why some companies make such a big deal about how they don’t sell your email information to other companies? Well, it’s because most of them do sell your information. In fact, renting out an email list is one of the most profitable uses for an email list. A good rule of thumb is to only sign up for emailers that promise not to sell or lend out your information.

If you want to stay one step ahead of the scammers, we suggest that you at least shop at stores that price match. But remember, there are plenty of other scams out there to watch out for, and if you’ve figured any of them out, tell us in the comments below.

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